Fleet World Workshop Tools
Car Tax Calculator
CO2 Calculator
Van Tax Calculator
BiK Rates Company Car Tax

What are fleets thinking?

By / 11 years ago / Features / No Comments

Cost (table 1)

In what remain challenging economic conditions, it is no surprise that company vehicle fleets are coming under significant cost pressure. What may be more surprising is that larger companies are positive about growth this year according to new research.

The results show that a balance of around 40% of fleet decision-makers expect cost pressures on the fleet to grow this year; slightly less than in previous years, but still a notable proportion.

As David Tinsley, economist at BNP Paribas, explains, economic conditions are improving but remain challenging none the less: ‘The outlook for the UK economy has improved somewhat of late and it appears that from here the economy ought to be able to show growth over the remaining quarters of 2013. That said, this expansion is not likely to be dramatic. There are still many headwinds facing the UK, from slow growth in the Eurozone to public sector consolidation at home.’

 

Growth (table 2)

Despite these conditions, fleet operators at larger companies are bullish that the number of vehicles they operate will grow. Table 2 demonstrates that 29% of UK fleet operators at companies with 100 or more employees expect the fleet to expand (an 18% balance). This is a higher proportion than we saw in the past three years, a higher proportion than in other European countries and a more optimistic outlook than that of companies with less than 100 employees.

 

Complexity (table 3)

Nearly half of companies with 100 or more employees and around a third of smaller businesses think that fleet management is becoming more complicated (see below). By its nature, companies Contract Hiring vehicles can benefit from expert advice and support from their provider, helping them to make sound decisions and filling any knowledge gaps that they may have.

Mike Waters, senior insight and consultancy manager at Arval, said: ‘There is no doubt that the role of the fleet manager is a more difficult one than it used to be. A combination of vehicle related taxation, regulation, new vehicle technologies, health and safety and environmental performance are just some of the factors that they must now understand and consider as part of the decision making process. It is almost impossible for one person to have all of the knowledge and skills now necessary to optimise the fleet operation.’

 

Electric vehicles

In businesses with 100 or more employees, only 7% plan to incorporate electric vehicles into their fleet. The picture is a similar one for companies with less than 100 employees. 

‘There is a clear trend towards more efficient and sustainable vehicles and the research shows that this includes new vehicle technologies. From the current base, a 4% adoption of electric vehicles would be a significant increase,’ said Waters.

The research also found that 18% of businesses are even willing to pay a price premium in order to operate zero emission vehicles.

Waters added: ‘The ongoing savings that businesses can make on the most efficient vehicles can outweigh the up-front premium that they pay.’

 

Driver education

The UK results show that 31% of companies with 100 or more employees are doing nothing to address driver behaviour, nor are 62% of companies with less than 100 employees.

Waters said: ‘There’s no doubt the way that drivers operate a vehicle has a huge impact on mpg performance, emissions, safety and the cost of operation. Fleets really should put as much thought into educating and managing their drivers as they do into vehicle selection if they want to optimise fleet performance.’

 

CVO briefs

58% of large fleets think resale values of used cars will drop in the next year, with only 17% believing they will increase.

52% of small fleets self purchase rather than lease, compared to 38% in 2009. Among the largest fleets only 23% self purchase with the others mainly using finance or operational leasing.

Three-quarters of the largest fleets take action on driver behaviour to minimise impact on the total cost of ownership. Only a quarter of the smallest fleets take similar action.

Only 31% of larger fleets think that new vehicle MPG performance figures provide an accurate representation of actual fuel consumption.

72% of small fleets and 86% of larger fleets intend to shift to less polluting vehicles.

For more of the latest industry news, click here.

Steve Moody

The author didn't add any Information to his profile yet.